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BPCL share hits 52-week high on record dividend; here's what brokerages say

The March quarter profit included a one-time gain of Rs 6,992.9 crore from the sale of the entire stake in Numaligarh Refinery Limited (NRL)

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BPCL share rose 3.5 per cent to hit a 52-week high of Rs 488 in early trade after the company reported an over four times increase in standalone profit at Rs 11,940 crore in Q4. Profit in the previous quarter stood at Rs 2,777.62 crore.

The March quarter profit included a one-time gain of Rs 6,992.9 crore from the sale of the entire stake in Numaligarh Refinery Limited (NRL).

The share opened 3.5 per cent higher at Rs 488.00 against the previous close of Rs 471.30. The share has gained 44.5 per cent in the last 12 months and risen 25 per cent since the beginning of this year.

BPCL share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. Market cap of the firm rose to Rs 1,03,321.51 crore.

Revenue from operations grew 14 per cent to Rs 98,755.62 crore in the March-ended quarter against Rs 86,579.95 crore in the December quarter.

The average gross refining margin (GRM) of the corporation during the year ended March 31, 2021 ws $4.06 per barrel.

"COVID-19 pandemic, globally and in India, is causing a significant disturbance in economic and business activities. Management has assessed the potential impact of COVID-19 based on the current circumstances and expects no significant impact on the continuity of operations of the business on long term basis/ on useful life of the

assets/ on financial position etc," the state-run oil marketing company said.

JP Morgan has an 'overweight' rating on the stock with a target at Rs 550 per share. It noted that the large one-time dividend is the main highlight of a strong quarter.

"The core EBITDA was in line with estimates, with inventory gains driving a large beat," Jefferies noted. The brokerage house has a 'Buy' call on the stock with the target raised to Rs 520 per share.

Morgan Stanley mentioned that retail fuel hikes and dividend drives positive stance for the OMC. It has an 'overweight' rating on the stock with a target at Rs 480 per share.

BPCL board of directors has recommended a final dividend of Rs 58 per equity share, including a one-time special dividend of Rs 35 per equity share of Rs 10 each, for the financial year ended March 31, 2021.